Pound (GBP) unsettled after CPI data
The pound (GBP) traded unevenly yesterday, with markets largely shrugging off the UK’s latest consumer price index.
Headline inflation remained unchanged in February, while core inflation edged marginally higher. That said, the release appeared somewhat stale in light of the recent spike in global energy costs.
With little in the way of UK data today, Sterling may struggle to establish a clear direction.
Euro (EUR) rangebound despite ECB support
The euro (EUR) lacked a clear trend yesterday, moving within a narrow range.
Support from hawkish remarks by European Central Bank (ECB) President Christine Lagarde was tempered by a weakening in Germany’s latest business climate index.
Looking ahead, EUR may come under pressure after Germany’s newest consumer confidence reading pointed to a notable drop in household sentiment heading into April.
US dollar (USD) strengthened by geopolitical tensions
The US dollar (USD) advanced yesterday as renewed uncertainty in the Middle East lifted demand for the safe-haven currency.
Market caution followed Iran’s rejection of US President Donald Trump’s assertion that peace talks were already underway, with Tehran accusing Washington of ‘negotiating with itself’ and publicly rejecting the US peace proposal.
Today, the latest US initial jobless claims could influence USD movement, particularly if claims rise as expected. Broader risk sentiment is also likely to remain a key driver.
Canadian dollar (CAD) pressured by oil volatility
The Canadian dollar (CAD) came under initial pressure yesterday as oil prices declined, although it later recouped some losses as crude values recovered into the afternoon.
With little domestic data to guide trading today, movements in oil prices may continue to steer the ‘loonie’.
Australian dollar (AUD) subdued amid geopolitical concerns
The Australian dollar (AUD) remained under pressure overnight, lingering close to recent lows amid doubts surrounding renewed US-led peace efforts with Iran.
New Zealand dollar (NZD) weakened by risk aversion
The New Zealand dollar (NZD) declined overnight, touching multi-month lows against some counterparts as a cautious market mood dampened demand for risk-sensitive currencies.
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